World-leading position in core businesses; High-quality products and technological leadership; and Diversified production and sales, including an increasing share of service and aftermarket sales. Cyclical demand patterns for the company's products; Relatively high debt; and Recent underperformance against key indicative financial ratios for the rating. The ratings on Sweden-based tool and mining equipment manufacturer Sandvik AB are supported by the company's satisfactory business risk profile, which reflects its world-leading position as a cemented-carbide tool supplier to the metalworking industry. The company also has strong positions in other niches, such as tooling systems for metalworking applications, products for rock-excavation operations, and special steel products. Good pricing power and broad geographic and customer segment diversification further support the ratings. Standard&Poor's
